Solana (SOL) has been moving down since November 2021, and the price of this cryptocurrency has crashed last month to levels not seen since July 2021.
But where is the price of Solana (SOL) going next, in the third quarter of 2022?
The crypto market saw modestly higher prices this trading week, despite warnings from analysts that the market could fall further, and traders are looking for an attractive bottom level to enter. Today, Crypto Lists will discuss Solana price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk and how much margin you got if trading with leverage.
June – A rough month for the cryptocurrency market
June has been an extremely rough month for the cryptocurrency market; all major cryptocurrencies have been suffering from heavy selling due to hawkish signals from central banks and uncertainty because of the Ukraine crisis.
Investors are concerned about the risk of recession, and if central banks continue to act too aggressively, this could potentially move the global economy toward a recession. In that situation, Solana and all other cryptocurrencies could decline even more because investors look for safer places to invest their money.
Technical analysis for Solana
After hitting recent highs above $140 in April 2022, Solana (SOL) has encountered losses of more than 70%. The price has stabilized now above $30 support, but a break below this level would indicate that Solana could probably test the support level that stands at $25.
On the chart below, I marked the trendline, and as long the price of Solana is below this trendline, we can’t talk about a trend reversal, and the price of Solana remains in the SELL-ZONE.
Bearish traders who are already holding a position in Solana can feel confident the downtrend will continue unless the cryptocurrency makes a higher high. The price of Solana is also correlated with Bitcoin, and if the price of Bitcoin drops again below $20000, we can see new lows for Solana.
Main support & resistance levels for Solana
On this chart (the period from July 2021), I marked the main support and resistance levels that can help traders to understand where the price could move. The more often price tests a level of resistance or support without breaking it, the stronger the area of resistance or support is. When the price passes through the resistance, that resistance could potentially become support. Solana remains in the “bearish phase, “but if the price advances above $75, it could be a good sign of the trend reversal, and the next target could be located around $100. The current support level is $30, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $25. If the price drops below $25, which represents very strong support, the next target could be located around $20.
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What speaks for the rise in the Solana price
SOL has surged more than 20% since the beginning of July, rising from a low of $31.85 to a high of $39.70. The sudden upswing took SOL to test the $39 level multiple times, but it did not show enough strength to produce a candlestick close above it.
Many surveys show that institutional investors still remain bearish on Solana, and it is important to say that the bearish sentiment towards Solana has not been relegated to just institutional investors alone. The spot markets are also feeling the heat as sell-offs have resumed, and in light of this, Solana might have a hard time holding above the $30 level.
Solana remains in the “bearish phase, “but if the price advances above $75, it could be a good sign of the trend reversal, and the next target could be located around $100. Traders should also consider that the price of Solana is correlated with Bitcoin, and if the price of Bitcoin jumps above $25000, we can see Solana at $50.
What indicates further downfall for Solana
Economists have warned that a global recession could be on the horizon, and the consensus appears that the price of Solana will drop even more before reaching the bottom of the ongoing bear market. The price has stabilized now above $30 support, but a break below this level would indicate that Solana could probably test the support level that stands at $25. The price of Solana is correlated with the price of Bitcoin, and when the price of Bitcoin drops, that usually has a negative influence on the price of Solana.
Solana price expectations from analysts and experts
Many analysts and experts still remain bearish on Solana despite a huge sell-off in the last several months. The third quarter of 2022 will likely be a tough period for Solana, and according to Mike Novogratz, CEO of Galaxy Digital, cryptocurrencies could decline more than 50% from the current prices. As of writing, the global crypto market cap has slumped to $962 billion despite coming close to $3 trillion last year. Since tapping an all-time high in November, Bitcoin has plummeted more than 70%, which had a very bad influence on all other cryptocurrencies.
Deutsche Bank survey that was published recently said that the crypto crash could continue in the next several weeks, while investor Peter Brandt said that the bulls would have to wait several years before seeing another record high. Jim Cramer, an American television personality who runs the CNBC Investing Club and is the host of CNBC’s “Mad Money,” said last week that the bottom for Bitcoin, Solana and other cryptocurrencies may still be far from reach. According to Jim Cramer, given the current state of the global economy, there is no reason why the crypto market capitalization could not slump further.
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